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Organic Farming Results from the 2014 Organic Survey

United States Department of AgricultureNational Agricultural Statistics Service

www.agcensus.usda.gov(800)727-9540

Highlights

In 2014, the United States had 14,093 organic farms producing $5.5 billion in organic products. The number of organic farms varies across the country. California and Wisconsin are the only states with more than a thousand organic farms. Large numbers of organic farms are also found in northwestern, north central, and northeastern states. Southeastern states have relatively fewer organic farms. (Fig. 1)

These are among the many findings from the organic survey that USDA’s National Agricultural Statistics Service conducted in 2014 as part of the Census of Agriculture program.

Organic Farms

Of the organic farms identified in the 2014 Organic Survey, 12,634 were certified organic farms and 1,459 were exempt from certification because they gross less than $5,000 annually from organic sales. The total number of organic farms was fewer than in 2008, when a similar survey identified 14,540 such farms. (Table 1) The numberof certified organic farms increased by

Top States in . . .

. . . Organic Farms(number)

California 2,805Wisconsin 1,228New York 917Washington 716Pennsylvania 679Iowa 612Vermont 542Ohio 541Oregon 525Maine 517

Top States in . . .

. . . Organic Acres(thousands)

California 687Montana 318Wisconsin 229New York 213Oregon 204North Dakota 135Minnesota 133Wyoming 129Texas 127Idaho 125

Fig. 1Number of Organic Farms (certified and exempt), by State, 2014

number8 - 50 51 - 100101 - 500501 - 1,000> 1,000

U.S. = 14,093

Source: USDA NASS, 2014 Organic Survey

ACH12-29/September 2015

Table 1Number of Organic Farms, 2008 and 2014

2008 2014Certified organic 10,903 12,634Exempt from certification 3,637 1,459

Total 14,540 14,093Note: 2008 data include farms that produced but may not have sold organic products. 2014 data are for farms that produced and sold organic products.Source: USDA NASS, 2014 Organic Survey. 2008 data from the 2008 Organic Production Survey.

2 2014 Organic Survey

Organic production also concentrates in a few sectors. The top organic sector in 2014 sales was livestock and poultry products, primarily milk and eggs, followed by vegetables grown in the open and fruits, tree nuts, and berries. (Table 3) These two vegetable and fruit sectors together account-ed for 42 percent of organic sales. In comparison, these two sectors accounted for 11 percent of all agriculture sales in the 2012 Census of Agriculture.

Lettuce, apples, and grapes were the top-selling organic crop commodities, with $264 million, $250 million, and $195 million in 2014 sales, respectively.

Table 3Organic Sales by Sector and Top Commodities, 2014 ($ millions)

Sector(top commodities in sector)

Sector Total

Commodity Sales

Livestock and poultry products 1,504Milk 1,082Eggs 420

Vegetables in the open 1,250Lettuce 264Spinach 117Broccoli 79Carrots 69Sweet potatoes 68

Fruits, tree nuts, and berries 1,032Apples 250Grapes 195Strawberries 89Blueberries 61Almonds 32

Field crops 718Corn for grain 155Hay 139Wheat 102Soybeans 72Rice 35

Livestock and poultry 660Broiler chickens 372Other cattle 131Milk cows 69Turkeys 50Beef cows 16

Mushrooms 109

Vegetables under protection 76

Other 106U.S. Total 5,455Source: USDA NASS, 2014 Organic Survey.

1,731 farms during that time, while the number of exempt farms dropped.

Certified and exempt farms together accounted for 3.7 million acres of organic production in 2014, down from 4.1 million acres in the 2008 survey. Of the the 3.7 million acres of organic production, certified farms accounted for 3.6 million acres. Organic operations own approximately three fifths of the land they farm organically and rent from others the rest of the land they use for organic production.

Organic Sales

Organic sales are more concentrated geographically than the number of farms. Ten states accounted for 78 percent of sales. California alone accounted for 41 percent of all organic sales in 2014.

Of the $5.5 billion in 2014 organic sales, $3.3 billion or 60 percent came from the sale of crops, 28 percent came from livestock and poultry product sales (primarily milk and eggs), and 12 percent came from sales of organic livestock and poultry. In each group, organic sales are up substan-tially from 2008. (Table 2)

Table 2Organic Sales by Product Type, 2008 and 2014($ billions)

2008 2014% change

2008 - 2014

Crops 1.9 3.3 69Livestock and poultry products 0.9 1.5 66Livestock and poultry 0.3 0.7 108Total 3.2 5.5 72Source: USDA NASS, 2014 Organic Survey. 2008 data from 2008 Organic Production Survey.

Organic Sales ($ millions)

Top States Top Commodities

California 2,231 Milk 1,082Washington 515 Eggs 420Pennsylvania 313 Broiler chickens 372Oregon 237 Lettuce 264Wisconsin 201 Apples 250Texas 199 Cattle (milk, beef, other) 216New York 164 Grapes 195Colorado 147 Corn for grain 155Michigan 125 Hay 139Iowa 103 Spinach 117Source: USDA NASS, 2014 Organic Survey.

32014 Organic Survey

Marketing Organic Products

Nationally 78 percent of all organic sales in 2014 were to wholesale markets; more than six out of ten organic farms (63 percent) sold at least some of their products to whole-sale markets. In the country as a whole, 8 percent of organ-ic sales were made directly to consumers, but 45 percent of organic farms sold some or all of their products this way. (Table 4)

States varied widely in how organic producers market and sell their goods. The share of farms selling directly to consumers was highest in southeastern and northeastern states, and lowest in central states. In Alaska and Alabama, all organic farms sold directly to consumers, while in North Dakota, only 16 percent of organic farms did so. (Fig. 2)

Table 4Organic Sales by Type of Sale, 2014

% of totalorganic sales

% of organic farmswith this type

of salesWholesale markets 78 63Direct to retail markets and

institutions14 25

Direct to consumers 8 45Total 100Source: USDA NASS, 2014 Organic Survey.

In terms of first point of sale (the first point at which money is exchanged), 46 percent of organic sales were within 100 miles of the farm. Another 34 percent of sales were less than 500 miles away. (Table 5)

Fig. 2Share of Organic Farms with Direct Sales to Consumers, by State, 2014

percent16 - 19.9 20 - 39.940 - 59.960 - 79.980 +

U.S. = 45%

Source: USDA NASS, 2014 Organic Survey.

Who buys from organic farms?Organic farms sell to three kinds of markets:

Wholesale markets (78 percent of organic sales in 2014)Includes buyers for supermarkets and natural food stores; processors, distributors, wholesalers, brokers, and packers; cooperatives; and other farm operations.

Direct to retail markets and institutions (14 percent of sales)Includes supermarkets, natural food stores, restaurants, caterers, hospitals, schools, and other institutions.

Direct to consumers (8 percent of sales) Includes sales at farm stands, pick-your-own operations, and farmers’ markets, as well as through community supported agriculture (CSA) arrangements and mail and Internet orders.

Eighty percent of organic farms sold some or all of their organic products within a 100-mile radius of the farm, with many eastern and southern states, along with Alaska and Hawaii, having the highest shares of such farms. (Fig. 3)

Table 5Organic Sales by First Point of Sale, 2014

% of totalorganic sales

% of organic farmswith this type

of salesWithin 100 miles 46 80101 to 499 miles from farm 34 33500 or more miles from farm 18 13Internationally 2 3Total 100Source: USDA NASS, 2014 Organic Survey.

Fig. 3Share of Organic Farms Selling Within 100 Miles, by State, 2014

percent35 - 59.9 60 - 69.970 - 79.980 - 89.990 +

U.S. = 80%

Source: USDA NASS, 2014 Organic Survey.

4 USDA is an equal opportunity provider and employer.

Production Expenses

Organic farms spent $4.0 billion in production expenses in 2014, including $19 million for organic certification. By far the two largest expenses for organic production were for feed and hired labor, which together were 46 percent of production expenses. (Table 6) In comparison, for all U.S. farms, these two categories accounted for 33 percent of production expenses, according to the 2012 Census of Agriculture.

Table 6Top Production Expenses, Organic Farms, 2014($ millions and percent)

$ millions %Feed 927 23Hired labor 917 23Supplies and repairs 258 7Cash rent and lease 219 6Fertilizer 204 5Custom work 200 5Gasoline, fuels and oils 176 4Seeds 164 4Utilities 156 4Interest 112 3Animals 108 3Chemicals 78 2Taxes 67 2Organic certification fees 19 <1All other 351 9Total 3,956 100Source: USDA NASS, 2014 Organic Survey.

Production Practices

Organic farms use a variety of production practices to increase the efficiency of their operation or to maintain organic integrity. Sixty-seven percent of all organic farms reported using green or animal manures. Similar numbers

reported maintaining buffer strips or border rows to isolate organic products from non-organic land. Just over half reported using water management practices such as irriga-tion scheduling and controlled drainage. (Table 7)

Table 7Production Practices Used by Organic Farms

numberof farms

percent of farms

Green or animal manures 9,409 67Buffer strip or rows to isolate organic products 9,259 66Water management practices 7,506 53Organic mulch/compost 7,082 50No-till or minimum till cropping 5,724 41Planting location planned to avoid pests 5,405 38Crop or plant variety chosen for pest resistance 5,035 36Beneficial habitat maintained for insects or

vertebrates to manage pests or disease4,840 34

Biological pest management 4,779 34Source: USDA NASS, 2014 Organic Survey.

Plans for Future Organic ProductionThe 2014 survey asked organic farmers about their inten-tions for organic production in the future. More than five thousand organic farms (39 percent) intend to increase organic production over the next five years, while 5 percent intend to decrease or discontinue organic production.

The survey also asked both current and future organic farms about how many acres they had in transition to organic production. Before a farm may market products as organic, the land used for organic production must go through a three-year transition period in which no organ-ic-prohibited products are applied. In 2014, there were 1,365 certified and exempt farms transitioning an addi-tional 122,175 acres into organic production. Another 688 farms not currently producing organic products were transitioning 50,688 acres into organic production.

About the 2014 Organic Survey

The 2014 Organic Survey is a complete inventory of all known organic producers in the United States that are certified, exempt from certification (those grossing less than $5,000 annually from organic sales), or transitioning to organic production. The survey is part of the Census of Agriculture program; it was conducted by USDA’s National Agricultural Statistics Service in conjunction with USDA’s Risk Management Agency (RMA).

This Ag Census Highlights summarizes the results of the 2014 Organic Survey. You can find detailed national, regional, and state data in a published report available as a PDF on NASS’ website and in NASS’ online database Quick Stats. For more information on the Organic Survey and the Census of Agriculture, go to:

www.agcensus.usda.gov